The re-sale value of a leasehold property in Roundhay is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be concluded well before the eighty year mark. Statute entitles Roundhay qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of 90 years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Roundhay with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Roundhay,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Roundhay valuers.
Following protracted discussions with the freeholder of her purpose-built flat in Roundhay, Chloe started the lease extension process as the 80 year mark was quickly approaching. The lease extension was concluded in September 2012. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. O Roberts took over the lease of a studio apartment in Roundhay in November 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparative flats in Roundhay with an extended lease were valued about £260,200. The mid-range ground rent payable was £65 collected monthly. The lease terminated in 2091. Given that there were 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of fees.
Mr and Mrs. P Ramírez purchased a ground floor flat in Roundhay in August 2001. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Similar premises in Roundhay with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced annually. The lease expired on 4 May 2080. Taking into account 55 years left we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including legals.